Why buy property in Dubai: Save 6% instantly, get 10% return every year

Why buy property in Dubai: Save 6% instantly, get 10% return every year
Developers waive off 2% commission, 4% transfer fee
By Parag Deulgaonkar
Published Monday, February 01, 2016
Here is the best part of buying a property in Dubai today: You don’t pay the four per cent registration fee and the two per cent agent commission, thus saving six per cent in the deal.

And that’s not all. The units offered for sale are ready to move in.

The offer is valid on Emaar Properties’ Casa villas in Arabian Ranches.

As per the emailed offer, the buyer will have 12 months to make the full payment with the property agency stating that there will be no agency commission (2 per cent), no transfer charges (4 per cent); and the Oqood land registration charge (4 per cent) will be paid by Emaar.

The villas for sale are V188, which is four-bedrooms plus study, but the study has an attached bathroom that allows one to convert it to a five-bed.

Listed prices range between Dh3.7 million and Dh4.4 million.

Property consultancy Land Sterling said in its fourth quarter 2015 report that average price per square foot was Dh1,177 per square feet compared to Dh1,378 in 2014, while average rents stood between Dh165,000 and Dh323,000 per annum (pa) compared from Dh176,000 to Dh338,000 pa in 2014.

Gross and net rental yield was at 6.3 per cent and 6 per cent, respectively, compared to 5.6 per cent and 5.30 per cent, respectively, in 2014.

Ready to move in

Making it easier for salaried people to own property, Aqua Properties, a real estate company, is offering a seven-year monthly payment plan for units in Skycourt Towers, Dubailand.

The company has purchased 178 units worth Dh91 million in the project and is reselling them under a scheme offering studios from Dh4,000 a month; one-bedroom units from Dh9,000 per month and two-bedroom units from Dh13,000 a month.

It claims investors can expect a return on investment of above 10 per cent.

The company has already sold 51 units, it said in an emailed statement sent to Emirates 24|7.

“Although there will be no down payment for apartments, there is a one-off premium booking fee and a 2 per cent agency fee. The unit buyer will have to pay 4 per cent transfer fee at the end of the seventh year along with an admin fee of Dh1,000,” the statement said.

Title deeds will be issued at the end of the seventh year, or upon full payment.

The estimated service charges per square feet is Dh13, but under the offer service charge has been waived for a year.

Real estate agents put the current average sales price of studio, one- and two-bedroom units at Dh400,000, Dh650,000 and Dh925,000, respectively.

“Our investment reflects our beliefs and stems from our experience and expertise of the local property market. Skycourt apartments offer not only the opportunity to own an affordable home, but present an excellent investment,” said Paul Christodoulou, Chief Operations Officer, Aqua Properties.

The project has over 2,800 apartments in six towers.

UAE attractive

In January 2016, JLL, a global real estate consultancy, said the UAE remains an attractive real estate market and some buyers, especially owner-occupiers and those investors taking a long-term perspective, may well see value at current levels.

“Overall, we remain confident that while prices and rentals will soften further in the short term, they are likely to increase again, perhaps as soon as 2017, as the UAE continues on its’ path to becoming a more mature real estate market,” the consultancy said.

It ruled out oversupply in Dubai and Abu Dhabi residential and commercial space in 2016 with total unit completion ranging between 12,000 and 18,000 though developers expect to deliver 36,000 units this year.